New England Bancshares, Inc. Reports Earnings for the Three Months Ended June 30, 2006.ENFIELD Enfield, borough, Greater London, England Enfield, outer borough (1991 pop. 249,100) of Greater London, SE England. It is residential, with important concentrations of industry. , Conn. -- New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. Bancshares, Inc. (the "Company") (Nasdaq GM: NEBS NEBS Network Equipment Building System (Bell Telephone Labs) NEBS Network Equipment Building Standards NEBS New England Business Services NEBS New England Barbecue Society NEBS Neue Europäische Bewegung Schweiz ), the holding company for Enfield Federal Savings and Loan Association Federal Savings and Loan Association An institution chartered by the federal government whose primary function is to collect savings deposits and to provide mortgage loans. (the "Bank"), reported net income for the quarter ended June June: see month. 30, 2006 of $270,000, or $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share as compared to $336,000, or $0.06 per diluted share, reported for the same quarter a year ago. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]NET INTEREST AND DIVIDEND INCOME IMPROVES OVER PRIOR YEAR E[acute accent]Net interest and dividend income for the three months ended June 30, 2006 increased by $391,000. The increase for the quarter was primarily due to an increase in average interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin of $41.4 million and a 31 basis point increase in yield on average interest earning assets, partially offset by a $12.2 million increase in average interest bearing liabilities and a 62 basis point increase in the rate paid on average interest bearing liabilities. The changes of the yield on average interest earning assets and the rate paid on average interest bearing liabilities caused the Company's interest rate spread to decrease from 3.57% for the quarter ended June 30, 2005 to 3.26% for the quarter ended June 30, 2006. However, the Company's net interest margin for the quarter ended June 30, 2006 was 3.85% compared to 3.81% in the year earlier period as the Company invested proceeds from its second step stock conversion. E[acute accent]LOANS AND DEPOSITS GROW E[acute accent]Net loans outstanding increased $6.5 million to $154.6 million at June 30, 2006 compared to March 31, 2006. The increase in loans was primarily due to an increase of $4.6 million in one-to four-family residential mortgage loans, a $1.4 million increase in construction loans and a $651,000 increase in commercial loans. Total deposits were $170.6 million at June 30, 2006 and $169.0 million at March 31, 2006. The increase in deposits was due primarily to a $1.8 million increase in money market accounts, a $1.2 million increase in certificate of deposit accounts and a $500,000 increase in checking accounts, partially offset by a $2.0 million decrease in savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: . Securities sold under agreements to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. decreased $1.2 million from $7.3 million at March 31, 2006 to $6.1 million at June 30, 2006. Federal Home Loan Bank advances decreased $697,000 to $20.9 million at June 30, 2006 compared to $21.6 million at March 31, 2006. At June 30, 2006, total assets were $257.2 million, a decrease of $551,000 from March 31, 2006. E[acute accent]PROVISION FOR LOAN LOSS EXPENSE INCREASES DUE TO LOAN GROWTH E[acute accent]The provision for loan losses was $61,000 for the three months ended June 30, 2006, compared to $32,000 for the three months ended June 30, 2005. The increase in the provision for loan losses was due to the 4.4% increase in net loans from March 31, 2006 to June 30, 2006. E[acute accent]ASSET QUALITY E[acute accent]The Company's asset quality remained favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . Non-performing assets totaled $331,000 at June 30, 2006 compared to $600,000 at March 31, 2006. Charge-offs were $1,000 for the three months ended June 30, 2006, compared to $2,000 for the same period last year. The allowance for loan losses was 1.09% of total loans at June 30, 2006 and March 31, 2006. E[acute accent]NONINTEREST EXPENSE INCREASES E[acute accent]Noninterest expense for the quarter ended June 30, 2006 was $2.1 million, an increase of $515,000, from $1.6 million for the same quarter a year ago. The increase reflects additional salaries and benefit expense, professional fees, and occupancy and equipment expense. The increase in occupancy expense was due to the Company opening additional branches in the quarter ended June 30, 2006 and moving its headquarters and main retail office. During the quarter ended June 30, 2006, the Company started expensing stock options in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123R, amounting to $36,000 which had no corresponding expense in the previous year period. E[acute accent]Statements contained in this news release, which are not historical facts, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. Subject to applicable laws and regulation, the Company does not undertake - and specifically disclaims any obligation - to publicly release the results of any revisions which may be made to any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. E[acute accent]New England Bancshares, Inc. is headquartered in Enfield, Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). , and operates Enfield Federal Savings and Loan Association with eight banking centers servicing the communities of Enfield, Manchester Manchester, city, England Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. , Suffield, East Windsor East Windsor is the name of the following places in the United States of America:
Statistical Summary
(unaudited)
(dollars in thousands, except per share data)
Income Statement Data Three Months Ended
June 30,
2006 2005
-------------------
Net interest and dividend income $2,320 $1,929
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Provision for loan losses $61 $32
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Noninterest income $209 $185
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Noninterest expense $2,078 $1,563
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Net income $270 $336
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Earnings per share(1) :
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Basic $0.05 $0.06
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Diluted $0.05 $0.06
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Dividend per share(1) $0.03 $0.02
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Balance Sheet Data June 30, 2006 March 31, 2006
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Total assets $257,248 $257,799
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Total loans, net $154,573 $148,113
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Allowance for loan losses $1,696 $1,636
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Total deposits $170,560 $169,044
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Repurchase agreements $6,114 $7,325
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FHLB advances $20,945 $21,642
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Total equity $56,583 $56,821
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Book value per share(2) $11.41 $11.45
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Key Ratios Three Months Ended
June 30,
2006 2005
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Return on average assets 0.41% 0.61%
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Return on average equity 1.88% 4.65%
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Net interest margin 3.85% 3.81%
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(1) Earnings per share and dividends per share have been adjusted to
reflect the shares issued in the second-step conversion that was
completed on December 28, 2005.
(2) Calculation excludes unallocated ESOP shares and unvested
incentive stock grants. Including these shares in the calculation
causes book value per share to decrease to $10.58 and $10.63 at
June 30, 2006 and March 31, 2006.
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